Gold maintains recovery, but remains limited below the 100-day line

FXStreet – The price of gold in early American business in its recovery to continue, but it still lacks momentum, and thus, prices will remain below the 100-day line.

A slight deterioration in the risk appetite of investors on the international financial markets, which is reflected in the negative Performance of the stock markets, had increased the demand for traditional safe havens such as Gold. Thus, a six-day losing streak for the precious metal comes to an end for the time being.

Despite the slight recovery in Gold is listed still in the vicinity of a Two-month low, which was reached on Tuesday. Blame it on the growing expectations of a rate increase by the Federal Reserve at the June meeting. Because Gold pays no interest and readiness of the market participants is at a high risk and therefore unattractive.

The US economic data were consistently positive. So the Inflation the producers to have jumped significantly, and the weekly initial claims showed a larger than expected decline. That supported the Greenback and charged on Dollar-denominated commodities such as Gold. In fact, noted the US Dollar Index still near Three-week highs, and the effect on the recovery of the precious metal like Sand in the gearbox.

USA: retail sales in focus

Technical Levels

Gold price was last at an altitude of 1,221 dollars and the next Resistances lie at 1.224/25 (100-day line), 1.228 and 1.235.

Technical supports, however, are found in 1.217/15, 1.210, and 1.205/04.

** FXStreet News Editorial, FXStreet**

Leave a Reply